The largest part of the 2.16 million share turnover and the share price appreciation in the last trading session took place after the promoters sent the alerts one hour before market close on Friday. The e-mails just reminded PPBL statements from some old press release about its plans to search for shareholder value increase through future acquisitions, implying that the company may come up with a press release on Tuesday morning. Investors can only imagine what kind of acquisitions can make a company like Premiere Publishing, which had zero total assets against almost $3.8 in liabilities at the end of last reported quarter (the three months ended Sept. 2010).
Even more fascinating is how this can happen without any dilution, as also promised by the company and its promoters. Yet, dilution is an issue that PPBL cannot obviously not escape from. Among the company’s various debts is a convertible note with the principal amount of $480,000. That note was in default already in November 2009 and the balance at the end of March 2010 was $769,805. At the end of last September, the number of shares of common stock potentially issuable upon conversion was estimated at almost 77 million. That number almost equals the currently outstanding number of shares and would require an amendment of Premiere Publishing articles of incorporation to increase the company’s authorized capital.
This may not be exactly the news that could get traders excited, but still the technical indicators are positive and show that if more buyers come on Tuesday, and PPBL share price manages to overcome the $0.040 level, it could be facing then no other resistances up to $0.085. PPBL closed at $0.037 on Friday, and the chance for an over 100% profit could make it easy to promote that stock, and profit from a possible jump up. The promoters do not disclose any compensation, but one of them declares to be a buyer of the stock on the open market.
